Thursday, September 29, 2005

Tax Consequences of Flipping Houses


There's a good article at Bankrate.com about the investment practice of flipping houses. With skyrocketing values of home across the nation, this has become an even more popular investment strategy.

A current client of mine recently bought a property and is wanting to flip it. I recommended she use it as a rental for a period of time, then sell it when it qualifies for a 1031 exchange. Under this strategy she could defer taxes. Surprisingly, her accountant told her not to worry about the tax implications because, if she was going to make a lot of profit, why would she care about paying part of it to taxes. I totally disagree with that thinking when there is a strategy to make the profit AND avoid the taxes.

Just so an investor considers all the possibilities and makes an informed decision, it's fine with me.

Yours for success & prosperity,
Carol

Tuesday, September 27, 2005

Thought For The Day


I have been through some terrible times in my life,
some of which actually happened." - Mark Twain


I love that quote from Mark Twain. We do tend to
exaggerate the crisis of the moments, don't we?
If you follow the "real" tragedies in the world, it's a
little easier to keep life in perspective.

Have a great week!
Carol

Monday, September 26, 2005

Quote of the Day


Work as though you would live forever,
and live as though you would die today.

-Og Mandino {1923-1996 American Motivational Author & Speaker}

It's difficult to find that perfect balance between planning for later in life and living for today, but it's absolutely essential for a well balanced life.

Og Mandino is absolutely one of my favorite inspirational speakers. If you have never read any of his books or listened to his tapes, I highly recommend them. My favorites are "The Greatest Salesman In The World" and "Mission Accomplished". I prefer the tape versions because you get the pleasure of listening to Og himself. I love his voice. It is peaceful, motivational and inspirational.

Yours for success,
Carol

Sunday, September 25, 2005

Thought For The Day


Owning a home is a keystone of wealth...
both financial affluence and emotional security.
-Suze Orman

Monday, September 19, 2005

How To Fix The Mortgage Industry


The Wenatchee real estate market, although small, suffers some of the same issues as any real estate market. The crazy housing market everywhere has made the business of shopping for and securing the right mortgage a little crazy as well. It's downright confusing.

Although it's entitled "How To Fix The Mortgage Industry", I was reading an article in my Inman News feed recently which really explains, in simplified terms, a little about how the mortgage industry actually works. The author does offer some suggestions for improving the system, which really isn't a sytem at all... but is a mass of independent contractors (mortgage brokers) vying for all the business they can get. Even though the loans themselves are provided through Federal guidelines, the loan fees are unregulated... and, therefore, leaves a lot of room for unscrupulous fees on the part of the mortgage brokers. There are, of course, Truth In Lending disclosures and you should pay close attention to them because it tells you how much the total loan is actually costing you (including all the fees).

I almost always read the "final settlement statement" for my clients before closing to analyze all the fees being charged by the mortgage broker and the lender. These fees are often excessive and can be negotiated. Of course the better time to negotiate is upfront before choosing a loan but, sometimes, they throw in these "junk fees" later and when you get to the closing table you don't feel in a position to be negotiating fees because you risk the deal falling through. I suggest you ask your escrow office to provide a final settlement statement at least 1 day before you are schedule to sign closing documents. You can compare this to your original "Good Faith Estimate" to be sure they're not charging you what we call "junk fees", which are just extra to create more profit for themselves.

My final comment is to shop for a loan just like you would shop for any large ticket item, and be sure you know all the fees involved. The "Good Faith Estimate" is your best upfront tool in comparing loans.

Have a great week,
Carol

Thursday, September 15, 2005

International Property Search



is a website I recently discovered where you can search for properties in 24 countries around the world. This site assists consumers with locating properties, real estate professionals, and real estate business practice information in the international market, through the International Consortium of Real Estate Association. (ICREA). The National Assn. of REALTORS® is a founding member and co-chair of the group.

Have fun checking it out.
Carol

www.TopPropertiesWenatchee.com
www.CarolsWenatchee.com

Google's New Blog Search Feature

Have you heard about Google's newly launched blog search feature? It is totally awesome because if you forget the address of any blog (or want to find new blogs) you can just go to the Google blog search and type in the name of the blogger or the city or subject... whatever is most appropriate. In my case I typed in "Wenatchee Real Estate" and my blog entries were all over the place. Then I typed in just the word "Wenatchee" and there they were again. I must be the only one in the world "blogging" on the Wenatchee real estate market. This feature in Google is just for weblog searches, and not web sites in general. You can type in your favorite hobby or the city where you live or whatever and get a bunch of blog entries to choose from. This is truly awesome! Google rules the blogosphere!

Have a great day!
Carol

Carol@TopPropertiesWenatchee.com
Residential Blog: www.CarolsWenatchee.com
Primary real estate website: www.TopPropertiesWenatchee.com

Friday, September 09, 2005

Investment Real Estate Prices


Dear Readers,
As the effects of Hurricane Katrina rage throughout the economy, I have been contemplating how this is going to affect our Wenatchee area real estate market. Our national economy is so intertwined, we can't kid ourselves into thinking it's not going to affect us here in the Wenatchee Valley.

For example, there is an ever increasing demand on the reduced supply of building materials and other supplies. As petroleum prices increase, building supplies cost more to produce.... and it costs more to get them delivered to their ultimate destination. There is going to be a huge demand through the hurricane ravaged area and we are going to pay more for supplies and labor. The reality of prices based on supply and demand will never be more obvious.

There has been a surge in multi-family investment construction in our local market area. The above factors are going to significantly affect the future construction costs of such projects. Will they continue to develop or will this slow the trend? Will existing investment properties become a more attractive investment or will they go up in value to reflect the potential reduction in competition?

So many questions. So few answers. Stay tuned.

Have a great week-end!
Carol

Monday, September 05, 2005

HUD Removes Foreclosure Properties


Two thumbs up for HUD.

I just read on the Real Estate Blog Squad blog that the Department of Housing and Urban Development (HUD) has removed their foreclosure homes from the market in the following states:
Georgia, Oklahoma, Tennessee, Kentucy, Texas

This is being done in response for the critical need for housing to care for those displaced as a result of Hurricane Katrina.

And, remember, real estate agent have lost their homes and jobs too. If you have any opportunities for them, please let me know!

Thanks!
Carol

Sunday, September 04, 2005

East Wenatchee Development Property


Here is a newly listed local investment opportunity:
Home on large lot, with potential to divide lot off and build duplex or other multi-family. The home has been used as a duplex, with complete living area on the lower level. 936 sq.ft. on each level.

The home has been vacant for nearly two years and was recently purchased from an estate. The home is in good condition, and the interior recently painted but the yard needs some TLC. The current owners have already done a lot of work with chain saws and weed whackers to clean it up. Home alone is listed at $139,900.

Additional lot, when separated, will be $39,900... but a discount would be given if bought all together.

For details and to arrange a preview of the property, e-mail or call me at:
Carol@TopPropertiesWenatchee.com
509-670-7840

To search for other investment properties, visit my primary real estate website at:
www.TopPropertiesWenatchee.com

Or... write me with your specific criteria and I will send you a customized list of investment properties:
Carol@TopPropertiesWenatchee.com

Have a great day!
Carol